The impact of remittances on food insecurity evidence from Mexico

Literature has provided evidence that remittances have an impact on (economic) development and quality of life in developing countries. However, little is known about how income from remittances is perceived and used in relation to food consumption and, more specifically, its effect on food insecurity. Using data from CONEVAL’s 2013 and 2015 Rural Households Surveys (ENCHOR) we estimate ordered probit regressions with instrumental variables in order to assess the impact of both international and internal remittances on food insecurity of households in rural Mexico. Our findings show that both kinds of remittances have significant effects on the food insecurity. International remittances appear to reduce food insecurity more than internal remittances, although not enough to make remittance-receiving households food secure. The findings suggest that remittances as a household strategy are not sufficient to ameliorate the precarious food insecurity of poor households in rural Mexico. Therefore, remittances should be considered as a complementary step to reduce food insecurity levels, but should not replace the government’s responsibility for solving this problem.